In the Context of the Equity Theory, Which of the Following

question 36

Multiple Choice

In the context of the equity theory, which of the following is an outcome of underpayment inequity?

• A) An employee will try to increase his or her inputs.
• B) An employee's satisfaction level at work tends to increase.
• C) An employee's valence tends to be positive.
• D) An employee is not likely to exert effort at work.
• E) An employee will try to reduce his or her outcomes.

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Definitions:

Retained Earnings

The portion of a company's accumulated net income that is not distributed to shareholders as dividends but is kept as reserves for reinvestment in the business operations.

Stock Dividend

A payment made by a corporation to its shareholders in the form of additional shares, rather than cash.

Fair Value

An estimate of the price at which an asset could be bought or sold in a current transaction between willing parties, not in a forced or liquidation sale.

Market Price

The current price at which an asset or service can be bought or sold in a competitive marketplace.